Minister of Steel Development engages Ministry of Finance Incorporated on funding for rehabilitation of some sections of Ajaokuta, NIOMCO, to increase investment value in privatization process
…constitutes a 6-man committee to draft terms of reference
As the Federal Government intensifies efforts for the privatisation of the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO), Itakpe, the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, has engaged the Ministry of Finance Incorporated (MOFI) on measures to increase the asset value of both Ajaokuta and NIOMCO in order to attract viable investment during the privatisation process.
Prince Audu steered the discussion between the team of the Ministry of Steel Development and the MOFI led by its Managing Director, Dr. Armstrong Ume-Takang, on Tuesday, January 22, 2025, in his office in Abuja, as they explored various mechanisms to rehabilitate some of the sections and explore potential investment opportunities.
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This is also as the Ministry of Steel Development and MOFI immediately constituted a six-man committee with an eight weeks time frame to draft a term of reference for engagements.
The discussions emphasised the importance of leveraging the financial expertise of the MOFI to develop a sustainable investment framework that will not only boost productivity but also attract potential investors.
According to the Honourable Minister, the Ministry has made significant progress in its efforts in reviving both Ajaokuta and NIOMCO, with the most momentous being the signing of the Memorandum of Understanding (MoU) between the federal government and the original builders of the Ajaokuta Steel Plant, Messrs. TPE, in September 2024 in Moscow, Russia, and its engagements with strategic partners and some government ministries and agencies which are ready to partner with the Ministry once Ajaokuta and NIOMCO are up and running.
Prince Audu, however, noted that it is important for the government to put in some work to revive some components of the plant to prepare for privatisation and increase the valuation of the assets.
“This is a capital-intensive project, and the money voted in the budget is barely enough to get us to where we need to get to. We have explored several funding options, which we are still doing.
“I want us to engage and share ideas as to what should be brought on board in terms of the priority projects and funding options,” Prince Audu stated.
The Managing Director of MOFI, Dr. Armstrong Ume-Takang, commended the honourable Minister on his strategic efforts and dexterity, which he describes as steps in the right direction.
Takang assured of the collaboration of MOFI in ensuring the operationalisation of Ajaokuta and NIOMCO, noting that until they become functional again, the country will continue to be short-changed.
Lizzy Okoji
Special Assistant (Media) to the Honourable Minister of Steel Development,
Prince Shuaibu Abubakar Audu
January 22, 2025.
